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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (58055)	9/22/2016 9:28:50 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78673

Reducing branch traffic by moving transactions online is not necessarily a problem for banks, but it will make the branches and the real estate obsolete. Bank building are custom buildings in most cases and need significant modifications or razed down to make them ready for another use. Also, if the face of aback moves effectively online, it is going to be harder for a small bank to attract new customers and compete. Building a website is more or less a fixed cost and is easy to do for a larger banks (which can spread out the cost) than for a small bank. I think the same may be true for many small business , as the transactions and the advertisement moves online, larger business will benefit from having scale. The biggest impact will be in retail (Imo), where I can see lot's of commercial real estate becoming obsolete. Owning warehouses in strategic locations with a good traffic connection close to larger cities may be a better value proposition. Those are way cheaper per sqft than mall space, so converting Malls into warehouses will be a last resort and not a way out for those who own Malls that will become obsolete.